Give an example of adverse selection and an example of moral hazard using homeowners insurance
An example of adverse selection is that someone whose home is in a location prone to theft is more likely to apply for homeowners insurance. An example of moral hazard is that once someone has insurance, he might keep fewer fire extinguishers in the house.
Economics
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Paper money has been in use since the
a. Roman Empire. b. eleventh century in China. c. Civil War in the United States. d. development of money-center banking in nineteenth-century London.
Economics
Explain the principal–agent problem in business
Please provide the best answer for the statement.
Economics